Property News Malaysia: If you refuse to sell but all other owners want to sell, then how?
For Budget 2024, government will lower the threshold for en-bloc sale
It was announced just recently that the government will be benchmarking the international standards for en-bloc sale and Singapore was mentioned as one of those country to be referred to. Click here to read more – Redevelopment is now easier Briefly, this means that if a certain percentage of the owners of a block agrees to sell, then the small number / minority cannot reject the deal. Today, even 1 out of 500 owners can say no and the whole deal will collapse. Of course, there are always many different perspectives. Let’s get to know what does the President of the Royal Institution of Surveyors Malaysia (RISM) thinks about the Budget 2024.
Article in nst.com.my Sr. Adzman Shah Mohd Ariffin, president of the Royal Institution of Surveyors Malaysia (RISM) said that Budget 2024 did not address Malaysia’s oversupply situation and rising property development costs.
He believes that the new stamp duty flat rate of four per cent for foreign purchasers of properties is expected to deter foreign investors.
He shared that RISM generally supports the 2024 Budget. He said, “RISM hopes that the government will review all the suggestions and ideas shared during the numerous time-consuming engagement sessions with people from all levels during the past few months and take them into account in reviewing Budget 2024.”
Adzman also said that the decision to lower the threshold for en-bloc sales is unlikely to excite investors because Malaysia still has a lot of land and is not as densely populated as Singapore and Hong Kong. Article in nst.com.my
Redevelopment needs to focus on people and not just the investors
I am not a policy maker. However, if I am, my focus for redevelopment definitely is to balance the need for housing with the wants of the investors. Especially when we look at recent news where some people have to rent a super small space and a minister had to come out and warn landlords not to be unscrupulous and rent out ‘grave-like’ space to the renters. Here’s that article of his warning. A fine for owners renting out grave-like rooms.
Actually, with urbanisation continuing, more Malaysians from smaller towns would be moving to cities. Just today, I read that there are more than half a million young people enrolled in tertiary institutions. Where would these people go to start their careers once they graduate? This means they will need a place to stay and this number will rise faster than whatever development we may have which meets their expectations.
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